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The Evolving Role of Channel Marketing. Presented by Channel Management Professionals. Objectives. To help the Channel Marketing team create a “baseline” for the channel marketing function To identify areas of potential interest and growth To discuss how roles can/will evolve

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the evolving role of channel marketing

The Evolving Role of Channel Marketing

Presented by Channel Management Professionals

objectives
Objectives
  • To help the Channel Marketing team create a “baseline” for the channel marketing function
  • To identify areas of potential interest and growth
  • To discuss how roles can/will evolve
  • To identify how stakeholder requirements may change
agenda
Agenda
  • An Organizational Perspective
    • How/where channel marketing reports
    • Different models and rationales
    • Pro’s and con’s
    • Trends
  • A Functional Map
    • The “roots” of channel marketing
    • The “gray zone” -- roles and functions that may be migrating to channel marketing
    • The gaps – functions missing in most organizations
    • The borders – roles and functions that most likely will never migrate to channel marketing
  • Topics for discussion
the two faces of channel marketing
The Two Faces of Channel Marketing

Channel Marketing includes both responsibilities

Partner Program Infrastructure

1- to -1 initiatives

Consistent policies, requirements, benefits and management across a broad range of partners

Customized joint marketing initiatives for the “critical few”

slide5
Organization: WHERE Channel Marketing Reports is a Function of the Company’s Ability to Perform in a Multi-channel Environment

STAGE II

STAGE III

STAGE I

?

The three stages of channel organization

  • STAGE I - a company has little experience/comfort with channels
  • STAGE II - multiple channels well-integrated into the company’s culture and understanding
  • STAGE III - cost is a primary driver of all organization design
    • move to centralized marketing
    • Keep as many customer-facing resources in the sales organization as possible
organization stage i channels is a separate organization
Organization: Stage I – Channels is a Separate Organization

VP Marketing

VP Channels*

VP Sales

Sales Ops

Channel Sales

Channel Marketing

Ops

Direct Sales

Product

Corporate

*In some companies, this title also has responsibility for Business Development/Alliances

  • In the early stages of a company’s marketing through channels, many organizations give “channels” a separate organization:
    • Clean “line of sight” to and from senior management
    • Separate commitments to and from product teams
    • Ability to develop processes and policies specific to channels
organization stage ii most organizations quickly evolve to a single reporting structure
Organization: Stage II – Most Organizations Quickly Evolve to a Single Reporting Structure

VP Sales

VP Marketing

Sales Ops

Direct Sales

Channel Sales

Product

Corporate

Channel*

or

*Communications only

Channel Sales

Channel Marketing**

  • A single reporting structure:
  • Promotes channel harmony
  • Encourages joint planning and teaming
  • Uses support resources efficiently

**strategy, programs, policies

organization stage iii cost is driving channel marketing s migration to the cmo
Organization: Stage III – Cost is Driving Channel Marketing’s Migration to the CMO

VP Sales

CMO

Corporate

Channel

Ops

Direct

Channel

Product

Channel Strategy

  • Cost is driving scale and specialization decisions at every level of the organization. For Channel Marketing, this often means:
  • A change in reporting to the CMO (a relatively new position created to emphasize the importance of marketing to the organization)
  • A renewed emphasis on professional tools and techniques that have been developed over the past 10 years
a typical channel marketing organization
A Typical Channel Marketing Organization
  • Traditional functions within a Channel Marketing organization:
    • Field marketing (for each region)
    • Demand creation
    • Indirect channel marketing
    • Channel development
    • Global alliance marketing
    • Direct channel marketing
slide10
Functionality: Today Channel Marketing is Increasingly a Critical Bridge between the Product and Sales Teams
  • The evolution of the channel marketing function:

THE GRAY ZONE

THE BORDERS

THE ROOTS

THE GAP

functionality channel marketing s roots are in communications
Functionality: Channel Marketing’s ROOTS are in Communications

THE ROOTS

Traditional Deliverables of Channel Marketing

the challenges to the traditional channel marketing organization
The Challenges to the Traditional Channel Marketing Organization
  • Market analysis and metrics
  • Channel satisfaction
  • Channel economic analysis
  • Channel strategy definition
  • Process and systems definition and management
  • Reporting infrastructure development and management
  • Development of partner program and components
  • Channel relationship management

THE GRAY ZONE

Increasingly, Channel Marketing is called upon for some or all of the following deliverables:

the gray zone increasingly channel marketing is called upon to centralize activities
The “Gray Zone”: Increasingly, Channel Marketing is Called Upon to Centralize Activities
the gray zone increasingly channel marketing is called upon to centralize activities14
The “Gray Zone”: Increasingly, Channel Marketing is Called Upon to Centralize Activities
the gray zone increasingly channel marketing is called upon to centralize activities15
The “Gray Zone”: Increasingly, Channel Marketing is Called Upon to Centralize Activities
the gray zone increasingly channel marketing is called upon to centralize activities16
The “Gray Zone”: Increasingly, Channel Marketing is Called Upon to Centralize Activities
the gap most organizations continue to have two major gaps in their go to market functions
The Gap: Most Organizations Continue to Have Two Major Gaps in Their Go-to-Market Functions
  • End-user segmentation – understanding how target end-user segments purchase software:
    • Who
    • What
    • Why
    • Where
    • How
    • When
  • Channel Segmentation – understanding each channel’s underlying business model

“buying behavior” segmentation

the gap the importance of end user segmentation
The Gap: The Importance of End-User Segmentation
  • Who is buying
    • Decision-makers and influencers
  • Why are they buying
  • What are they buying
    • “product” vs. “solution”
    • Front market vs. aftermarket
  • When are they buying
    • Budget cycles, etc.
  • Where are they buying
    • Channel preferences
  • How do they buy
    • AVL (Approved Vendors List)
    • VPA
    • Centralized vs. decentralized

ALLOWS CHANNEL MARKETING TO:

  • Identify the correct targets for marketing messages
  • Create meaningful messages
  • Develop powerful sales tools for the channel sales team
the gap the user defined channel template sets the stage for channel marketing s value add
The Gap: The User-Defined Channel Template Sets the Stage for Channel Marketing’s Value-Add
  • Allows Channel Marketing to:
  • Recommend and develop appropriate channel selection metrics
  • Recommend and develop appropriate support programs
  • Track channel success by critical functions

PRE

SALE

POSTSALE

ON-

GOING

SALE

Bundling

Installation

Terms

Training

Tech Support

Demo

Needs assessment

Config assistance

Updates

New product information

End-User Requirements during the Buying Process

the gap the importance of channel segmentation
The Gap: The Importance of Channel Segmentation
  • Channel size
  • Business mix
  • Product mix
    • % of revenue from our product category
  • Brand mix
    • Genesys share of category
  • Customer mix
  • Geography served
  • Resource mix
  • Margin expectations
  • Set reasonable expectations for channel performance
  • Create compelling channel value propositions
  • Create program components that add value to both the company and the channel partner

ALLOWS CHANNEL MARKETING TO:

the borders many functions will probably never migrate to channel marketing
The Borders: Many Functions Will Probably NEVER Migrate to Channel Marketing

THE BORDERS

THE BORDERS

*Channel Marketing plays a key role in developing the infrastructure to support these activities.

summary and discussion
Summary and Discussion

The Roots

The Gray Zone

The Borders

The Gap

Where does the team fall on this functional continuum?

questions for discussion
Questions for Discussion
  • Where do you see the team’s role heading:
    • How might this impact the skills required of the team
    • How might this impact the way the team will need to work with other parts of the organization
    • How will this impact resource requirements? What needs to be different:
      • Today
      • In the future
  • What are the current strengths of the team?
  • What are its greatest challenges?